NIBSS Enhances Nigeria Quick Response (NQR) Payment System to Drive Cashless Economy
The Nigeria Inter-Bank Settlement System (NIBSS) has upgraded its Nigeria Quick Response (NQR) payment system, reinforcing Nigeria’s transition toward a cashless economy. The enhancement aims to make digital transactions more seamless, secure, and accessible for both businesses and consumers.
Originally launched in March 2021, NQR is a QR code-based payment solution designed to unify Nigeria’s QR payment landscape. It provides a cost-effective, instant transaction alternative to cash, allowing users to simply scan a merchant’s QR code and complete payments through their bank or mobile wallet.
The upgraded NQR system now supports both Person-to-Person (P2P) and Entity-to-Person (E2P) payments, ensuring broader applicability and immediate settlement for merchants and consumers. Security remains a key focus, with mechanisms in place to minimize fraud risks while maintaining efficiency.
According to Premier Oiwoh, MD/CEO of NIBSS, the goal is to empower all merchants, including street vendors, to accept digital payments effortlessly. By reducing dependence on cash, NQR enhances transaction safety and financial inclusion across the country.
In August 2024, NIBSS partnered with Zone, a blockchain payment infrastructure provider, to integrate Payment Terminal Service Aggregator (PTSA) functions into Zone’s blockchain network. This move aims to enhance interoperability within the Point-of-Sale (PoS) payment ecosystem, enabling financial institutions to route transactions directly without traditional intermediaries.
Nigeria’s fintech landscape is highly competitive, with major players like Opay, Flutterwave, and Paystack dominating digital payments. While these platforms rely on mobile wallets, bank transfers, and online payment gateways, NQR differentiates itself through direct bank integration and lower transaction fees. The newly structured pricing model for NQR will take effect on March 1, 2025, making it an even more attractive option for businesses of all sizes.
Despite its advantages, widespread adoption remains a challenge, particularly among small-scale vendors and businesses in rural areas where cash transactions still dominate. Continuous education, incentives, and awareness campaigns will be essential in driving merchant and consumer adoption of QR-based payments.
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